Commitments include the joint development of marine engines that will comply with the future Tier 3 emissions standard. Volkswagen is a leading manufacturer of diesel marine engines with a maximum rating of 258 kW (350 hp) and will set up series production of the new engine generation at its plant in Salzgitter. Furthermore, under the agreement concluded today all Volkswagen marine engines will from 2011 on be exclusively supplied to CMD and marketed under the CMD name.

The Tier 3 emissions standard comes into effect in the United States in 2012, with the corresponding European standards following from 2014 onwards. Tier 3 prescribes significantly lower thresholds for emissions of nitrogen oxides (NOx) and other pollutants and requires the further development of diesel combustion technology.

"The name of Volkswagen Marine stands for engines of the highest technological standard," Professor Dr. Werner Neubauer, member of the Board of Management of the Volkswagen brand responsible for ‘Components’, said. "The strategic marine business offers significant potential for both partners. We bring to the alliance our technological know-how in engine production and the high quality standard of Volkswagen products. CMD has expert knowledge of marine applications and is well known for its success in marine engine distribution and service," Neubauer added. "Today’s agreement marks the beginning of a further field of expertise in an automotive-related area and therefore safeguards employment at Volkswagen on a sustainable basis," Neubauer continued.

"The cooperation between Volkswagen and CMD ideally combines the strengths of both partners," Dr. Arno Antlitz, member of the Board of Management of the Volkswagen brand responsible for ‘Controlling and Accounting’, said. "It originates an offer program in the naval market with the chance of a clear increase of the sales amounts of our engines in this area", Antlitz further.

"We are delighted with this union. It brings together the best minds and capacities in the field of marine propulsion systems," Alex Savelli, President of CMD, commented. "We are convinced the relationship with Volkswagen will put us in a position to meet the requirements of the new exhaust legislation for the marine industry well before it comes into effect. Our alliance will not only culminate in new products that set the ecological benchmark in their class, but will also bring added value with regard to reliability, reduced noise and vibrations, size, weight and price."

About CMD:

Based in Charleston, South Carolina (USA), Cummins MerCruiser Diesel is responsible for designing, manufacturing and providing reliable after-sales support worldwide for marine propulsion products. It offers a broad range of power, with available ratings from 115-715 hp for recreational applications and 76-715 hp for commercial use. Cummins MerCruiser Diesel is a joint venture between Cummins Inc. and Mercury Marine and can be found on the internet at www.cmdmarine.com